Market Matters Blog
DDG Prices Weaker
OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $107 for the week ended Aug. 24, three cents lower on average from two weeks ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Aug. 24 was at 87.60%, and the value of DDG relative to soybean meal was at 35.95%. The cost per unit of protein for DDG was $3.96, compared to the cost per unit of protein for soybean meal at $6.27.
A merchandiser in California told DTN the market was "very soft out here" with the drop in the board, collapsing canola meal values, and heat suppressing cow feed intake. Since August 1, the DTN Cash Index has lost 14 cents as of Aug. 24. Some merchandisers noted that the market was "sideways" the past few weeks and another said the market has been "dismal."
CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices weakened in the past few weeks with August at $143 to $147, and August-September at $142 to $146. Barge movement could see interruptions and/or slowdowns as Hurricane Harvey makes landfall in the Texas Gulf, with heavy rains possibly causing flooding on the Mississippi River from Baton Rouge, Louisiana, to the Gulf of Mexico, depending on where the path of the storm goes. There is still nothing official on Vietnam returning to the U.S market, but rumors are circulating it may be September.
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DDGS News
A Regional Nutrition Conference was held earlier this month in Peru, organized by the U.S. Grains Council (USGC) with support from the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service (FAS). Attendees included 126 participants from across the region, including Colombia, Peru, Ecuador, Costa Rica, Chile, the Dominican Republic, Mexico, Venezuela and Honduras. Many attendees expressed interest in further collaborating with the USGC, including evaluating DDGS in dairy cattle diets under tropical conditions, importing and distributing DDGS to smaller end-users in Ecuador and Peru, and evaluating DDGS corn oil in poultry diets in Colombia.
"There is overnight opportunity for increased DDGS and sorghum sales throughout the region with both current and potential users," said Marri Carrow Tejada, USGC regional director for the Western Hemisphere. "Educational activities such as this one increase awareness of our U.S. products with key decision makers in the livestock sector -- nutritionists. This, in turn, absolutely contributes to increased sales in the region."
CURRENT | PREVIOUS | CHANGE | |||
COMPANY | STATE | 8/24/017 | 8/10/017 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $120 | $120 | $0 | |
Modified | $60 | $60 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $115 | $115 | $0 | |
Indiana | Dry | $110 | $112 | -$2 | |
Iowa | Dry | $110 | $110 | $0 | |
Michigan | Dry | $105 | $105 | $0 | |
Minnesota | Dry | $105 | $105 | $0 | |
North Dakota | Dry | $115 | $115 | $0 | |
New York | Dry | $120 | $125 | -$5 | |
South Dakota | Dry | $105 | $105 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $108 | $112 | -$4 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $108 | $110 | -$2 | |
Iowa | Dry | $108 | $108 | $0 | |
Michigan | Dry | $105 | $108 | -$3 | |
Minnesota | Dry | $108 | $110 | -$2 | |
Missouri | Dry | $120 | $120 | $0 | |
Ohio | Dry | $108 | $110 | -$2 | |
South Dakota | Dry | $103 | $103 | $0 | |
` | ` | ||||
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $114 | $114 | $0 | |
Wet | $45 | $45 | $0 | ||
Illinois | Dry | $125 | $122 | $3 | |
Nebraska | Dry | $114 | $114 | $0 | |
Wet | $45 | $45 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $110 | $110 | $0 | |
Indiana | Dry | $103 | $108 | -$5 | |
Iowa | Dry | $103 | $108 | -$5 | |
Michigan | Dry | $100 | $105 | -$5 | |
Minnesota | Dry | $100 | $105 | -$5 | |
Nebraska | Dry | $102 | $102 | $0 | |
New York | Dry | $120 | $135 | -$15 | |
North Dakota | Dry | $100 | $105 | -$5 | |
Ohio | Dry | $105 | $110 | -$5 | |
South Dakota | Dry | $100 | $100 | $0 | |
Wisconsin | Dry | $105 | $110 | -$5 | |
Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
Indiana | Dry | $105 | $110 | -$5 | |
Iowa | Dry | $105 | $110 | -$5 | |
Minnesota | Dry | $105 | $110 | -$5 | |
Nebraska | Dry | $108 | $108 | $0 | |
Ohio | Dry | $110 | $115 | -$5 | |
South Dakota | Dry | $95 | $100 | -$5 | |
California | $172 | $172 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $176 | $182 | -$6 | |
*Prices listed per ton. | |||||
Weekly Average | $107 | $110 | -$3 | ||
The weekly average prices above reflect only those companies DTN | |||||
collects spot prices from. States include: Missouri, Iowa, Nebraska, | |||||
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, | |||||
Wisconsin and Indiana. Prices for Pennsylvania, New York and | |||||
California are not included in the averages. |
VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
Settlement Price: | Quote Date | Bushel | Short Ton |
Corn | 8/24/2017 | $3.4200 | $122.14 |
Soybean Meal | 8/24/2017 | $297.60 | |
DDG Weekly Average Spot Price | $107.00 | ||
DDG Value Relative to: | 8/24 | 8/10 | |
Corn | 87.60% | 84.21% | |
Soybean Meal | 35.95% | 37.39% | |
Cost Per Unit of Protein: | |||
DDG | $3.96 | $4.07 | |
Soybean Meal | $6.27 | $6.19 | |
Notes: | |||
Corn and soybean prices take from DTN Market Quotes. DDG price | |||
represents the average spot price from Midwest companies | |||
collected on Thursday afternoons. Soybean meal cost per unit | |||
of protein is cost per ton divided by 47.5. DDG cost per unit | |||
of protein is cost per ton divided by 27. |
Mary Kennedy can be reached at Mary.Kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ)
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